Tag Archives: OnlineEd

1031 Tax Deferred Exchange

Benefits of the 1031 Tax Deferred Exchange

When Section 1031 tax deferred exchange requirements are met, the real estate transaction will qualify for deferral of capital gain taxation

When a taxpayer sells a business or investment property, there might be a financial gain resulting in income taxes. The Internal Revenue Code in Section 1031 (IRC Section 1031) provides an exception that allows postponing the payment of the tax owed on the gain if the proceeds are reinvested in like-kind property. This gain is deferred; it is not tax-free. IRC Section 1031 is more commonly known as the 1031 Tax Deferred Exchange.

The like-kind exchange can include like-kind property exclusively, or it can include like-kind property with cash, liabilities, and unlike property. When cash, relief from debt, or property that is not like-kind is received, this can trigger some taxable gain in the tax year of the exchange. When an exchanger exchanges for like-kind property of lesser value, the transaction can include deferred and recognized gains, those that must be paid, for the amount not reinvested.

When Section 1031 requirements are met, the real estate transaction will qualify for deferral of capital gain taxation until the substitute property received in exchange is finally sold outright unless exchanged for another like-kind property. There isn’t any limit on the number of 1031 exchanges a taxpayer can perform. Other names for the like-kind exchange are 1031 Exchange, an IRC Section 1031 Exchange, a Like-Kind Exchange, a Tax Deferred Exchange, and Starker Exchange.

(Watch this OnlineEd video that summarizes the main points and benefits of the tax-deferred Exchange)

Section 1031 Vocabulary

  • Relinquished Property – the property in an exchange that is being given up for the new property; the sold property.
  • Replacement Property – the property in an exchange that gets traded for the old property; the purchased property.
  • Exchanger – The party who is performing the tax-deferred exchange.
  • Boot – The portion of a tax-deferred exchange that is taxable.

Type and Character of Property

To qualify as a tax-deferred exchange, the relinquished property must be of the same kind of property as the replacement property. This same kind of property is called like-kind property. Like-kind refers to how the property is held by the investor, not by the type or character of the property. Property that does not qualify as like-kind property that is part of an exchange is called boot or taxable boot. The exchanger (the investor) must have held the relinquished property for investment or for productive use in their trade or business and intend to do the same with the replacement property at the time the exchange is made.

Examples of Like-Kind Property

  • Residential for a bank building
  • Swampland for an apartment building
  • Bare land for a rental house
  • Single-family rental for multi-family rental
  • Non-income producing for income-producing
  • Duplex for a grocery store the exchanger intends to operate

Examples of Unlike Property

  • Personal use real property
  • Cash
  • Dealer property such as inventory
  • Paper (notes, mortgages, trust deeds, and land sale contracts)

Remember, when Section 1031 requirements are met, the real estate transaction will qualify for deferral of capital gain taxation; the transaction is not tax-free. For more information about this subject, visit the Beutler Exchange Resource Library or your qualified tax professional. This article is not intended as tax advice.

Handing out a business card

How To Tips for Business Card Etiquette

“It’s nice to meet you! May I give you my business card?”

Knowing the proper way to treat and hand out your business card says a lot about you, the respect you have for yourself, and the person you are giving it to. Always be courteous and ask permission before giving out your business card, and only give it to someone who asks for it or after you ask permission to give it.

How to offer a business card

  • Always have cards on hand. Card exchanges and business socializing often take place at unlikely times and places.
  • Be courteous when offering your card and attempt to limit distribution to qualified leads. Handing out 200 cards to everyone at a trade show will not be as productive as taking the time to find 10 qualified leads at the same seminar.
  • Always give your card to someone who asks for it — and be sure to ask for theirs in return.
  • Hand out pristine cards. Your card should adequately represent who you are and the pride you take in your profession. Throw away old, torn, or worn-out cards.
  • Use a business card case that properly represents your professionalism. Keeping your cards in your billfold or floating around in your purse makes for a disorganized impression. It also gives the message that you don’t really take the business card exchange ritual seriously.
  • If appropriate, take the time to write a quick note on the card to help the recipient remember you, what you talked about, and why your card was given.
  • Don’t hand out more than one card per contact unless more is asked for. If the person you are giving the card to does not have a card of their own, offer two of your cards and ask them to write their contact information on the backside of one and then return the card to you.
  • In meetings, don’t slide your card across the conference table. Instead, stand up and hand your card to each individual as introductions are made.
  • If you offer one person a card in a group, offer your card to everyone in the group.

How to accept a business card

  • Always accept an offered business card.
  • If you give a card, ask for a card.
  • Say Thank You! as soon the card touches your hand.
  • Look at the card for a few seconds as if digesting the information and then compliment the card, font, or logo, if appropriate.
  • Put the card in your business card case. Don’t disrespect the card or giver by putting it in your back pocket or other places that say you don’t really care it was given.
  • Follow up within one or two days from receiving a business card. Let the giver know you appreciated meeting them, your conversation, or information exchange.
  • It’s okay to request a business card, but if the person you are requesting it from maintains a higher position than you, wait for them to offer a card. For example, you wouldn’t ask the CEO of major companies or politicians, such as your state senator or the President of the United States, for a personal business card.f

How to design a business card

  • Avoid having too much information on your business card; don’t clutter it up with too many trade or professional designations that won’t mean anything to the public.*
  • Use professional paper and printing.
  • Use a graphic designer or online business card templates to help you design your card.
  • Include your essential contact details, including your name, company name, email address, and telephone number.
  • Avoid trade designation initials that might confuse your prospects. ABR, SFR, GRI mean nothing to a potential real estate client.*
  • Make sure your colors, font, and other information are easily readable by business card scanners or when converted to other types of electronic format.

* Design separate cards for giving out to your associates. These cards should include your trade or professional designations or designation initials.

Your business card will maximize your chances of successfully making qualified contacts. Remember, your card should represent you as a professional and convey how you think about yourself and conduct business. Don’t skimp and keep it professional.

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OnlineEd is a provider of pre-licensing, post-licensing, and continuing education for real estate and mortgage brokers. For more information about OnlineEd, please visit www.OnlineEd.com.

Oregon Excludes Certain Facts as Material Facts to Real Property Transactions

Oregon Excludes Certain Facts From Disclosure as Material Facts to Real Property Transactions

By Jeff Sorg, OnlineEd Blog


sellers disclosure statement(February 10, 2021)
 – In Oregon, unless one of the limited legal exclusions applies, each seller of residential property is required to deliver to each buyer who makes a written offer a Seller’s Property Disclosure Statement. A seller who is not excluded under the law who fails to deliver this statement is penalized in that the buyer of the property will be able to revoke their transaction at any time up until closing.  These allowable seller exclusions are:

  • The first selling of a dwelling never occupied;
  • The sale of property by a financial institution that acquired the property as a trustee, custodian, or agent, or by foreclosure or by deed in lieu of foreclosure,
  • The seller who is a court-appointed trustee, representative, conservator,  or guardian; and
  • The sale of property by a governmental agency.

While the Oregon form lists many items that must be disclosed and allow for additional material facts not listed in the form to be disclosed, the following are among incidents that are not considered to be material to a real property transaction under Oregon law and do not have to be disclosed by the seller or real estate brokers:

  • The fact or suspicion that the real property or a neighboring property was the site of death by violent crime, by suicide, or by any other manner;
  • The fact or suspicion that the real property or a neighboring property was the site of a crime, political activity, religious activity, or any other act or occurrence that does not adversely affect the physical condition of or title to real property;
  • The fact or suspicion that an owner or occupant of the real property has or had a blood-borne infection;
  • The fact or suspicion that a sex offender registered under ORS 163A.010 (Reporting by sex offender discharged, paroled or released from correctional facility or another United States jurisdiction), 163A.015 (Reporting by sex offender discharged, released or placed on probation by court or another United States jurisdiction), 163A.020 (Reporting by sex offender upon moving into state) or 163A.025 (Reporting by sex offender adjudicated in juvenile court) resides in the area; and
  • The fact that a notice has been received that a neighboring property has been determined to be not fit for use under ORS 453.876 (Determination that property is not fit for use).

Brokers should advise their buyers of these exceptions and notice them to perform their own due diligence investigations.

(Original article published October 21, 2015)

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 All information in this posting is deemed correct at publication but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices, and all other information may or may not be correct in the future and should be verified if cited, shared, or otherwise republished.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

Top Relocation States During the Pandemic

Florida tops the list of buyer destinations during the pandemic

By Jeff Sorg, OnlineEd Blog

(August 19, 2020)

Stack of moving boxes on a hand truck      (OnlineEd)Hire a Helper, who has been helping people move for over 10 years, has released what they bill as “The Ultimate Collection of US Moving Statistics” on their web site https://www.hireahelper.com/.

The report is a comprehensive hub for every major relocation study in America and includes migration reports, van line reports, and government census data. The report has as its goal to combine, compare, and contrast data across every major moving report to explain where Americans are moving. These are some interesting facts you will find in their report:

  • 9.8% of Americans moved in 2019 – the lowest rate in 70+ years. This moving rate has been steadily declining since reaching a high of 20.2%, way back in 1985.
  • 35 fewer people moved in 2019. At roughly 31.4 million people, that’s 3% fewer than a year ago when 32.3 million Americans relocated, and 16% fewer than 5 years ago in 2015 when 36.3 million people moved.
  • 21.2% moved to a different county within the same state in 2019, the second-highest rate in 30 years.
  • 20% of Millennials moved in 2019, the highest % among all age groups; only 3.5% of people aged 65+ moved last year.
  • 20% of people renting a home moved in 2019; 5% of homeowners moved in 2019.
  • 85% of people moved at least once in the last 5 years; 75% moved once or twice in the previous 5 years; 6% moved once every year; 4% moves multiple times each year.
  • On average, Americans move 11 times in their lifetime.

States People Moved INTO the most 2019 (HireAHelper):

  1. Idaho
  2. New Mexico
  3. Maine
  4. Arizona
  5. South Dakota
  6. Iowa
  7. Mississippi
  8. Nevada
  9. North Carolina
  10. Vermont

Where Do Americans Who Leave Their State Go? (Source: US Census Bureau)

  1. Florida
  2. Texas
  3. California
  4. North Carolina
  5. Georgia
  6. Virginia
  7. New York
  8. Pennsylvania
  9. Washington
  10. Illinois

 

This comprehensive report is chock full of useful information, including % of people who moved by demographics, reasons for moving, highest traffic of inbound and outbound moves, state-by-state, and top city by net moves in each state to name a few. You can get your copy of the complete report at https://www.hireahelper.com/moving-statistics/.

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint is given or implied.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

Information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

FHA Issues Rule to Include Approval of Individual Units in Non-Approved Condo Projects

FHA responds to the market

By Jeff Sorg, OnlineEd Blog

(August 22, 2019)

To promote homeownership, especially among credit-worthy first-time buyers, the Federal Housing Administration (FHA) published its long-awaited final regulation, and policy implementation guidance, which establish a new condominium approval process. That provides for comprehensive revision to FHA condominium project approval policy. The new policy will allow specific individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved. The polices become effective on October 15, 2019.

FHA’s new rule introduces a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing; extends the recertification requirement for approved condominium projects from two to three years; allows more mixed-use projects to be eligible for FHA insurance.

“Condominiums have increasingly become a source of affordable, sustainable homeownership for many families and it’s critical that FHA be there to help them,” said U.S. Housing and Urban Development Secretary Ben Carson. “Today, we take an important step to open more doors to homeownership for younger, first-time American buyers as well as seniors hoping to age-in-place.”

HUD Acting Deputy Secretary and FHA Commissioner Brian Montgomery added, “Today we are making certain FHA responds to what the market is telling us. This new rule allows FHA to meet its core mission to support eligible borrowers who are ready for homeownership and are most likely to enter the market with the purchase of a condominium.”

The vast majority (84 percent) of FHA-insured condo buyers have never owned a home before. While there are more than 150,000 condominium projects in the U.S., only 6.5 percent are approved to participate in FHA’s mortgage insurance programs.  As a result of FHA’s new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.

Read FHA’s new condominium approval regulation.

 

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint is given or implied.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

Information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Home Value Appreciation Has Slowed Each Month This Year

Annual home value appreciation decreased for the seventh straight month in July

By Jeff Sorg, OnlineEd Blog

(August 16, 2019)

SEATTLE, Aug. 16, 2019 /PRNewswire/ — U.S. home value growth continues to slow, according to the July Zillow® Real Estate Market Reporti. The typical U.S. home is worth $229,000, up 5.2% from a year ago – this is the smallest annual appreciation since October 2015. Last year at this time, home values rose 7.7% year-over-year. Still, home values are up 0.3% month-over-month, an indication that values are stabilizing after a period of relatively extreme growth rather than headed for a sustained downturn.

Among the 50 largest U.S. markets, home values have grown the most in Salt Lake City (up 9.4% since July 2018), Indianapolis (up 8.1%) and Charlotte (up 7.3%), although growth is slowing in each of these metros. Only New Orleans, Birmingham and Oklahoma City saw home values appreciate at a greater rate than a year ago.

Home values have fallen year-over-year in California’s San Francisco Bay Area, home to the two most expensive markets in the country. The value of the typical home fell 10.5% in San Jose and 1.1% in San Francisco. A year ago, home values were growing 24% annually in San Jose, a 34.5 percentage point difference.

“As talk builds of a potential recession in the next year or two, housing remains fairly stalwart,” said Zillow Director of Economic Research Skylar Olsen. “The slowing appreciation is ultimately a good sign that the market is adjusting in response to the growing unaffordability of down payments, while low mortgage rates are keeping those with the required savings interested despite softer growth out the gate. The uptick in the rate of homes coming onto the market – a good and true increase in supply – should be a boon to those inventory-starved home buyers still searching near the close of home shopping season. While buyers are catching a break, renters have seen prices continue their steady upward climb, presenting yet another obstacle in the quest to save for that down payment.”

The median U.S. rent rose 1.9% year-over-year to $1,592ii. For the eighth consecutive month, rents rose the most in Phoenix (up 6.1% from a year ago), followed by Las Vegas (up 5.9%). Rents fell in only three of the 50 largest markets – Houston, Buffalo and Baltimore.

Inventory grew 1.3% annually, reversing four straight months of declines. There are 19,978 more homes for sale than this time last year. New listings drove the inventory growth in July, up 5.7% from a year ago.

Mortgage rates listed on Zillow fell lower in July. Rates ended the month at 3.72%, down 23 basis points from July 1. Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market.

Metropolitan Area Zillow Home Value Index, July 2019 ZHVI Year-over-Year Change, July 2019 ZHVI Year-over-Year Change, July 2018 Zillow Rent Index, July 2019 ZRI Year-over-Year Change, July 2019 Inventory Year-over-Year Change, July 2019
United States $229,000 5.2% 7.7% $1,592 1.9% 1.3%
New York, NY $442,800 3.2% 5.5% $2,279 2.3% 4.8%
Los Angeles-Long Beach-Anaheim, CA $650,600 0.9% 6.3% $2,599 1.3% 11.3%
Chicago, IL $225,200 2.1% 5.3% $1,615 1.3% 6.9%
Dallas-Fort Worth, TX $243,500 5.1% 11.8% $1,439 1.5% 12.3%
Philadelphia, PA $233,300 2.1% 5.3% $1,497 2.5% -4.8%
Houston, TX $206,400 3.4% 6.1% $1,378 -0.5% 5.5%
Washington, DC $407,700 2.1% 3.8% $1,971 2.0% -8.8%
Miami-Fort Lauderdale, FL $284,300 3.2% 8.2% $1,851 2.2% 3.8%
Atlanta, GA $220,300 6.9% 11.8% $1,454 4.1% 8.3%
Boston, MA $463,300 1.9% 6.2% $2,416 2.2% 8.4%
San Francisco, CA $938,100 -1.1% 9.4% $3,166 1.2% 21.5%
Detroit, MI $162,900 4.6% 9.4% $1,211 2.3% 17.4%
Riverside, CA $371,500 3.3% 7.3% $1,907 4.3% -1.6%
Phoenix, AZ $267,500 4.5% 7.7% $1,401 6.1% -2.9%
Seattle, WA $489,500 0.5% 8.7% $2,036 2.4% 14.3%
Minneapolis-St Paul, MN $272,000 4.3% 6.6% $1,494 0.6% 4.9%
San Diego, CA $591,500 1.1% 6.1% $2,519 3.1% 6.0%
St. Louis, MO $167,700 3.5% 5.5% $1,009 1.3% -15.0%
Tampa, FL $216,400 5.0% 10.6% $1,392 3.7% 2.8%
Baltimore, MD $267,100 0.7% 4.9% $1,605 -0.1% -4.0%
Denver, CO $409,200 3.0% 6.7% $1,781 1.5% 26.9%
Pittsburgh, PA $144,700 2.5% 7.3% $1,102 1.8% -15.0%
Portland, OR $396,700 1.5% 5.3% $1,647 0.7% 3.1%
Charlotte, NC $210,600 7.3% 10.2% $1,322 3.5% 6.2%
Sacramento, CA $411,300 2.7% 5.4% $1,788 3.5% 0.8%
San Antonio, TX $195,600 5.0% 5.7% $1,215 0.3% 17.9%
Orlando, FL $240,000 5.1% 9.4% $1,414 3.5% 4.5%
Cincinnati, OH $170,400 5.4% 6.3% $1,145 3.2% -8.3%
Cleveland, OH $147,100 4.2% 6.6% $1,071 4.1% -1.3%
Kansas City, MO $191,900 4.7% 9.5% $1,121 1.0% N/A
Las Vegas, NV $279,100 5.1% 13.6% $1,329 5.9% 53.5%
Columbus, OH $193,800 6.5% 7.9% $1,183 0.6% -3.3%
Indianapolis, IN $167,300 8.1% 9.6% $1,100 1.0% N/A
San Jose, CA $1,144,800 -10.5% 24.0% $3,338 0.5% 32.6%
Austin, TX $312,300 4.7% 6.2% $1,586 2.1% -4.9%
Virginia Beach, VA $229,800 1.5% 2.8% $1,335 1.1% -9.6%
Nashville, TN $255,700 4.0% 9.8% $1,445 1.3% 14.6%
Providence, RI $295,100 3.4% 7.3% $1,427 3.2% -3.7%
Milwaukee, WI $232,500 4.5% 5.2% $1,094 2.5% 15.3%
Jacksonville, FL $214,400 5.5% 10.5% $1,348 3.9% -2.1%
Memphis, TN $141,000 5.1% 8.3% $1,047 4.2% -10.6%
Oklahoma City, OK $148,400 4.0% 2.9% $937 1.8% -11.5%
Louisville-Jefferson County, KY $164,400 5.5% 5.7% $1,087 1.4% -1.2%
Hartford, CT $229,100 0.2% 2.5% $1,334 1.1% -4.4%
Richmond, VA $232,000 4.0% 5.3% $1,323 1.3% N/A
New Orleans, LA $176,000 2.7% 0.0% $1,274 0.5% 0.4%
Buffalo, NY $161,400 4.4% 6.7% $1,015 -0.3% -1.2%
Raleigh, NC $269,100 5.2% 5.6% $1,286 1.0% 0.6%
Birmingham, AL $148,700 6.9% 5.5% $1,058 2.3% -5.9%
Salt Lake City, UT $373,200 9.4% 11.3% $1,494 1.7% 20.3%

 

[Source: Zillow press release]

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the sole property of the author; no permission to reprint is given or implied.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

Information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Report for Residential Construction Activity in June 2019

Building permits, housing starts, and housing completions report

By Jeff Sorg, OnlineEd Blog

(July 17, 2019)

(Wahington) US Dept. of HUD (c) Can Stock Photo– The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau jointly announced the following new residential construction statistics for June 2019.

Building Permits

Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,220,000. This is 6.1 percent (±1.2 percent) below the revised May rate of 1,299,000 and is 6.6 percent (±1.1 percent) below the June 2018 rate of 1,306,000. Single‐family authorizations in June were at a rate of 813,000; this is 0.4 percent (±1.0 percent)* above the revised May figure of 810,000. Authorizations of units in buildings with five units or more were at a rate of 360,000 in June.

Housing Starts

Privately-owned housing starts in June were at a seasonally adjusted annual rate of 1,253,000. This is 0.9 percent (±7.9 percent)* below the revised May estimate of 1,265,000, but is 6.2 percent (±7.8 percent)* above the June 2018 rate of 1,180,000. Single‐family housing starts in June were at a rate of 847,000; this is 3.5 percent (±9.6 percent)* above the revised May figure of 818,000. The June rate for units in buildings with five units or more was 396,000.

Housing Completions

Privately‐owned housing completions in June were at a seasonally adjusted annual rate of 1,161,000. This is 4.8 percent (±12.8 percent)* below the revised May estimate of 1,220,000 and is 3.7 percent (±10.5 percent)* below the June 2018 rate of 1,205,000. Single‐family housing completions in June were at a rate of 870,000; this is 1.8 percent (±11.5 percent)* below the revised May rate of 886,000. The June rate for units in buildings with five units or more was 283,000.

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Starting Today, Portland Home Sellers Can Request a Cash Offer From Zillow

Zillow Now Buying and Selling Homes in Portland

By Jeff Sorg, OnlineEd Blog

(July 15, 2019)

(PORTLAND, Ore.) July 15, 2019 /PRNewswire/ — Starting today, home sellers in the Portland, Oregon metro — including Vancouver, Wash. — can use Zillow Offers to request a cash offer from Zillow to buy their home.

Portland is the twelfth market where Zillow now directly buys homes – giving homeowners a new way to sell their homes that is convenient, transparent and gives them more control over the entire real estate transaction.

“Sellers across the country have shown that they are looking for an easier, less stressful way to sell their home,” said Zillow Brand President Jeremy Wacksman. “We’re excited to launch our first market in the Pacific Northwest today, giving potential home sellers in Portland and Vancouver the certainty and transparency they want when selling their home. Zillow Offers provides a seamless transaction experience, helping sellers move on to the next step in their life.”

Selling a home is one of the most stressful experiences in modern life, second only to a relationship break-up1. Decluttering and readying their home for tours and open houses are often the most frustrating tasks for sellers, according to Zillow research. In fact, according to a recent Zillow survey, more than a third of home sellers said the process left them in tears, with millennials and parents far more likely to cry at some point during the sale process.

Zillow Offers is transforming the way people sell their homes across the country. With Zillow Offers, sellers don’t need to worry about prepping their home for sale or hosting open houses — avoiding much of the hassle and time and energy associated with a traditional sale.

Designed to accommodate all types of sellers, Zillow Offers can work for anyone, whether they need to close quickly for a job move across the country or they want to close on a longer timeline to search for their dream home. Zillow Offers gives sellers the flexibility to choose their close date within just a few days or up to 90 days after accepting their offer.

Additionally, consumers using Zillow Offers – whether they are selling to or buying from Zillow – can experience an even simpler real estate transaction if they decide to get financing from Zillow’s affiliate lender, Zillow Home Loans to purchase their next home. Homeowners using Zillow Offers to sell their home can apply to get pre-approved for a mortgage through Zillow Home Loans, giving them the certainty to be able to sell their existing home and shop for a new home simultaneously.

Buyers who purchase a Zillow-owned home have the confidence of moving into a home that’s been professionally renovated, refreshed and is move-in ready.

Zillow Offers first launched in Phoenix last April and is currently available for home sellers in Las Vegas, Atlanta, Denver, Charlotte, Raleigh, Houston, Riverside, Dallas, Minneapolis and Orlando. Zillow also has plans to launch in Austin, Los Angeles, Miami, Nashville, Sacramento, San Antonio, San Diego and Tampa, by the end of the first quarter of 2020, bringing the total number of planned Zillow Offers markets to at least 20.

In each market where Zillow Offers is currently available, Zillow works with local agents and brokers on every transaction. Zillow pays a commission to local real estate agents when it buys and sells a home, and agents remain at the center of every Zillow Offers transaction. A local Portland broker will represent Zillow in each transaction.

The Zillow Offers program also provides local brokerages and Premier Agents the opportunity to acquire new for-sale listings by connecting them with motivated sellers who have taken a direct action to sell their home. Sellers who request a Zillow Offer, but decide to instead sell their house traditionally with an agent or do not receive a Zillow Offer, may be connected with a local brokerage or Zillow Premier Agent to support their needs.

As of May, more than 100,000 homeowners across the country have requested a no-obligation cash offer from Zillow to buy their home – equal to a request for an offer every two minutes.

[Source: Zillow press release]

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Zillow and Zillow Offers are registered trademarks of Zillow, Inc.

OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

About Those Arizona Bed Bugs

Highlights from Arizona Senate Bill 1306 (2011)

By Jeff Sorg, OnlineEd Blog

(April 30, 2019)

(OnlineEd) – Arizona Senate Bill 1306, passed in 2001, assigns specific responsibilities for bedbug control to landlord and tenants of multifamily housing.

Landlord Responsibilities:

  • Keep the dwelling unit free of a bedbug infestation
  • Provide tenants with a copy of the landlord’s responsibilities as outlined in SB 1306 on commencement of each lease
  • Provide educational materials to tenants, including:
    • Measures to prevent and control bedbugs.
    • General information about bedbugs and a description of their appearance.
    • Information about risk factors for attracting bedbugs such as:
      • used or discarded mattresses;
      • used or leased furniture;
      • pre-owned clothing; and
      • traveling without precautions to prevent transferring bedbugs back to the dwelling.
    • Information provided by the US Centers for Disease Control and Prevention and other Federal, State or Local health agencies.
    • Information provided by nonprofit housing organizations.
  • The landlord cannot enter into a lease with a tenant for a dwelling that has a known bed bug infestation.
  • Within seven business days after receipt of a written or electronic notice of a possible bedbug infestation from a tenant, the landlord or their licensed pest control operator shall visually inspect the unit for bedbugs and within seven business days after finding evidence of an infestation, the landlord will start a mitigation process in the unit.
  • Unless the landlord is a licensed applicator, the landlord shall not use any pest control techniques that constitute mitigation and shall use a pest control applicator who is licensed according to Title 32, Chapter 22.
  • The landlord will provide the tenant with written notice of the bedbug mitigation treatment protocol at least three business days before the initial treatment. Notice shall be deemed received by the tenant on the date the notice is personally delivered or mailed first class.
  • Unless otherwise provided in this section, the landlord is responsible for the bedbug mitigation expenses for the dwelling unit and any surrounding units that are infested.

Tenant Responsibilities:

  • The tenant shall maintain the dwelling unit free of an infestation of bedbugs.
  • The tenant shall not move materials into a dwelling that are infested with bedbugs.
  • A tenant who knows of the presence of bedbugs will provide the landlord written or electronic notification within three business days of discovering the presence of bedbugs. Notice provided by the tenant constitutes permission to the landlord to enter the dwelling for the sole purpose of inspecting for or mitigation of the bedbugs.
  • After receiving notice from the landlord of a bedbug inspection or mitigation, the tenant shall allow the landlord and the landlord’s licensed pest control applicator access to the dwelling.
  • The tenant shall comply with the bedbug mitigation protocol established by the licensed applicator, which may include pretreatment activities, temporary evacuation of the dwelling, posttreatment operations and an obligation to report the ineffective treatment or reinfestation to the landlord within three business days.
  • The tenant shall not apply or allow any unlicensed person to apply any bedbug control techniques that constitute mitigation.

If a landlord fails to inspect and, if necessary, mitigate an infestation, the tenant can give written notice to the landlord of the tenant’s intention to correct the condition, at the landlord’s expense. If the landlord fails to correct within ten days after being notified, the tenant can order the work to be done by a licensed pest control applicator, submit to the landlord an itemized statement for the pest control services and deduct from any rent due the actual and reasonable cost of the pest control treatment not to exceed five hundred dollars or one-half of the monthly rent, whichever is greater. If the tenant fails to comply with any of their obligations, the tenant may be held financially responsible for bedbug mitigation expenses for the dwelling and surrounding units that are also infested.

This law is for multi-family units. Landlords and tenants of single-family units are advised to work out their own agreement before when negotiating their agreements.

For additional information, please see the entire text of Arizona Senate Bill 1306.

 

 

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party or cited documents when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

All About Easements: The Easement in Gross

The easement in gross gives the owner of the easement the right to use real property for a particular purpose

By Jeff Sorg, OnlineEd Blog

(April 9, 2019)

(PORTLAND, Ore.) OnlineEd – The easement in gross gives the owner of the easement the right to use real property for a particular purpose. An easement in gross does not attach to or benefit a parcel of land and is usually created for the benefit of a legal person such as a utility company or railroad. The important characteristic of an easement in gross is that it gives the limited right to use another’s land and it is not created for the benefit of any land owned by the owner of the easement.

The land over which the easement in gross crosses is burdened by the easement and is known as the servient tenement. Since the easement right is personal and does not benefit another parcel of land, there is no dominant tenement.

Most easements in gross are for commercial purposes, are not revocable, (the servient tenement landowner cannot revoke the easement), and can be assigned to another legal entity. Some common examples of easements in gross are sewer lines, gas lines, electric lines, cable lines, etc.

Commercial easements in gross provide for the right to cross a property with the physical cable, pipe, power line or the like, as well as the right to re-enter the property after the initial installation to perform maintenance, repairs, and updates.

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OnlineEd blog postings are the opinion of the author and not intended as legal or other professional advice. Be sure to consult the appropriate party when professional advice is needed.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark